§ 1051. The next, is the power of congress "to borrow
money on the credit of the United States." This power
seems indispensable to the sovereignty and existence of a
national government. Even under the confederation this
power was expressly delegated. The remark is unquestionably
just, that it is a power inseparably connected with that
of raising a revenue, and with the duty of protection,
which that power imposes upon the general government.
Though in times of profound peace it may not be ordinarily
necessary to anticipate the revenues of a state; yet the
experience of all nations must convince us, that the burthen
and expenses of one year, in time of war, may more
than equal the ordinary revenue of ten years. Hence, a
debt is almost unavoidable, when a nation is plunged into
a state of war. The least burthensome mode of contracting
a debt is by a loan. Indeed, this recourse becomes the
more necessary, because the ordinary duties upon importations
are subject to great diminution and fluctuations in
times of war; and a resort to direct taxes for the whole
supply would, under such circumstances, become oppressive
and ruinous to the agricultural interests of the country.
Even in times of peace exigencies may occur, which
render a loan the most facile, economical, and ready
means of supply, either to meet expenses, or to avert calamities,
or to save the country from an undue depression
of its staple productions. The government of the United
States has, on several occasions in times of profound
peace, obtained large loans, among which a striking illustration
of the economy and convenience of such arrangements
will be found in the creation of stock on the purchase
of Louisiana. The power to borrow money by the
United States cannot (as has been already seen) in any way
be controlled, or interfered with by the states. The granting
of the power is incompatible with any restraining or
controlling power; and the declaration of supremacy in
the constitution is a declaration, that no such restraining
or controlling power shall be exercised.